Somersworth Housing Authority hires attorney to investigate thefts

SOMERSWORTH — The Somersworth Housing Authority has hired attorney Joseph McKittrick to dissect exactly what went wrong to allow the theft of $920,000 by former Finance Director Lisa Reid.

McKittrick has been asked by the SHA to investigate and thoroughly examine records.

“I have spoken to the people of the Somersworth Housing Authority and given everyone an appropriate chance to talk,” said McKittrick.

McKittrick stressed he is not implying anyone at the housing authority was criminally responsible, besides Reid. But, McKittrick is making sure the SHA has followed all proper rules and regulation since the crime, and if not, to determine to what degree they were not followed.

Robert Crichton, chairman of the authority’s Board of Commissioners, has been putting the pieces of the legal process together and taking action where the authority feels it is appropriate.

“My goal is to be as open with the public as possible and when the time comes to give specifics, you can bet we will give them,” Crichton said.

The authority hired McKitterick to do a thorough examination after an auditor’s report concluded a number of internal controls were missing within the authority that allowed the theft to occur. Officials estimate that over a six-year span, Reid stole $920,000 from the authority.

On Dec. 6, 2011, Reid was fired after admitting the theft to the authority’s Executive Director Elizabeth Salinger. Reid was found dead the following morning in her home from an apparent drug overdose.

The auditor’s report on the thefts states Reid processed checks written to herself on the check stock of certain checking accounts of the authority. It also claimed Reid endorsed the checks by scanning signatures from other legitimate checks and then printing them on the checks generated from her personal computer.

The question that remains is how did Salinger and the rest of the SHA not detect such fraud?

An auditor’s report stated,“The employee relied on the failures of management and the Board of Commissioners to implement effective controls. Proper segregation of duties in various controls activities would have reduced or eliminated the opportunity to commit fraud and basic monitoring procedures would have detected it.”

The Housing Authority has been saying little about the absence of Salinger after the Board of Commissioners unanimous vote in December to place her on paid leave.

However, the Housing Authority has added two new commissioners to the board, Martin Dumont and Lara Willard have recently been appointed. Dumont brings a strong financial background to the board as the Somersworth Housing Authority rolls into budget season. Dumont will be working with new systems that provide significant checks and balances. Willard comes from a background in communications and is the director of marketing and community relations for Goodwin Community Health.

“Coming through the doors of the housing authority I saw an extraordinary commitment. I am very familiar with serving the more vulnerable populated areas in the community. I hope to bring that to the table,” said Willard.

Because of Salinger’s leave of absence, the Board of Commissioners and SHA staff have been pulling together to revamp the system, leaving no room for any mishaps, Crichton stressed. Assistant Director Deborah Evans “has stepped up to the plate” to take on Salinger’s duties, Crichton noted.

“The board is very fortunate to have someone step in and do the job she (Evans) is doing. After such a disruption to the system, we are managing,” said Crichton.

“We cannot comment about certain things and interfere with the investigation. We are not trying to destroy anyone’s well being, this has to run its course,” Crichton said recently.

The investigation continues into exactly what assets the Reid family may still possess as a result of Reid’s actions. These potentially include Florida time shares and condominiums, a Jeep, a recreational vehicle and possibly an online trading account, as well as funds pumped into the family furniture business.

Although Crichton could not go into legal specifics about the case he did comment that the authority has not officially appointed Evans as its new director, but that it may be possible down the road.

Beth Salinger was recently contacted by phone by a Foster’s reporter, but declined to answer any questions.

The Housing Authority is scheduled to meet on Wednesday, Jan. 23, to discuss business decisions and oversights about offered services.

“So far it has been business as usual, but the staff has definitely pulled together to make sure the Housing Authority is moving forward. This is an impressive organization and we want to bring Somersworth back to believing that,” Willard said.